The effect of the #BlackLivesMatter Movement on Black-owned businesses

Even before COVID-19 struck, many Black-owned businesses like that of upscale boutique owner Rosalyn Karamoko, 34, of Détroit is the New Black, in Detroit, MI were facing economic hardships. According to a report by CNN, Karamoko thought that after sending home her five employees in mid-March, her business would not reopen.

Then, on May 25, 2020, something happened: an unarmed Black man named George Floyd was killed at the hands of police officers in Minneapolis, MN. This lead to the reawakening of the #BlackLivesMatter Movement. Floyd’s death sparked instant outrage that lead to worldwide protests. Because some of those protests turned violent and others did not want to risk contracting COVID-19, people found another way to support the movement: patronizing Black-owned businesses.

Karamoko saw her online sales triple as customers rushed to support Black-owned businesses to show solidarity with the #BlackLivesMatter Movement. However, this story is not unique to just Karamoko. According to an article by Guidant Financial, “Seventy-two percent of Black-owned businesses are profitable; a five percent increase from last year. Black small business or franchise owners are both happy and confident as business owners in the current political landscape.”

However, some businesses are concerned that the support they are currently receiving will not last. According to Pew Research Center, their concerns may be valid because support for the Black Lives Matter Movement has gone down since June, as of September.

Here are the top three concerns for small business owners and possible ways those challenges can be overcome through consumer help:

1. Lack of capital/ cash flow - A good way to help get a business off the ground or help a struggling business stay open as a consumer is to spread the word on partnerships with organizations such as American Express who launched the, “Coalition to Back Black Businesses,” that provides grants for Black-owned businesses through collaborations with the National Black Chamber of Commerce, the National Business League, the U.S. Black Chambers, Inc., and the Walker’s Legacy. For those who do not receive a grant, which is common because grants only allot a certain amount of money for support, here are other popular ways consumers can choose to help finance a business and/or keep it afloat.

2. Marketing and advertising - With social media often acting as free advertising for businesses, responding to and tagging others in Black-owned business advertising is quick, easy, and free.

3. Time Management - Time management issues are not something that is on the responsibility of the consumer. However, offering a little encouragement to those starting or trying to maintain their own business can potentially go a long way.

Just because support for the #BlackLivesMatter Movement is down does not mean there aren’t ways you can still support Black-owned businesses. In the wake of the economic turmoil caused by COVID-19, keep in mind that #BlackBusinessMatter too.

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